Changes to the requirements to qualify as a MIRA Registered Auditor
On 11 July 2019, the MIRA published Tax Ruling 2019/B70 which amends Tax Ruling 2018/B63 (Submission of Financial Statements and Appointment of Auditors). While this amendment brought about some changes to specified criteria under requirements to be fulfilled to become a MIRA registered Auditor, the ruling also repealed Paragraph 45 of the Tax Ruling 2018/B63.
Paragraph 45 of the Tax Ruling 2018/B63 requires “experience in audit and assurance service” gained by former employees of MIRA to be experience gained post to the date of termination of the employee’s contract with the MIRA. Hence, with this Ruling, the aforementioned limitation in the consideration for gained experience of former MIRA employees are overruled- meaning experience gained will no longer be restricted to the experience after the termination of service to the MIRA.
Additionally, with regard to the changes brought to the requirements to qualify as a Category A, Category B or Category C auditor, the MIRA has expanded some of the conditions. Prior to the new Ruling, under the requirements to be fulfilled by a partnership to become a Category A auditor, at least one partner of the partnership is required to have gained post-qualification experience in audit or assurance services of not less than 10 years, and must have been registered with the MIRA as an auditor for at least 5 years. However, with the new Ruling, an additional paragraph is introduced which allows a partner who has gained post-qualification experience in audit or assurance services of not less than 10 years and has been a partner of a partnership registered with the MIRA as a category A auditor, for at least 1 year to also be qualified as a Category A auditor, provided they fulfil all the other conditions set out in Tax Ruling TR-2018/B63.
Similarly, to become a Category B auditor, at least one of the partners of the partnership may now; (1) either have gained post-qualification experience in audit or assurance services of not less than 5 years and been registered with the MIRA as an auditor for at least 2 years, the partner may have gained post-qualification experience in audit or assurance services of not less than 5 years and been a partner of a partnership registered with MIRA as a category A auditor or category B auditor for at least 1 year.
Furthermore, the ruling also amends the duration of post-qualification experience required by individuals to register as a Category C auditor. If an individual is a fully qualified member of a professional accountancy body recognised by the MIRA, they are no longer required to have 4 years of post-qualification experience, but post qualification experience of at least 2 years is sufficient. Likewise, for individuals who have obtained an undergraduate or graduate qualification in accountancy or auditing, or is an affiliate member of a professional accountancy body recognised by the MIRA, the post-qualification experience in audit and assurance services are no longer required to be 5 years, but a service period of at least 4 years suffice.
The ruling takes effect from 11 July 2019.
Photo credit:@mindandi
